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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (46499)12/3/2005 1:45:55 PM
From: Ramsey Su  Read Replies (2) of 110194
 
Deflation is far more difficult to combat than inflation. That is the opinion of Bernanke as well as Greenspan. It is quite clear that at the first sign of trouble, Bernanke's Fed is likely going to start a new round of "accommodations", quickly and aggressively.

I assume the Feds will reverse course and start lowering Fed fund rates. What would that do to mortgage rates? Would long term rates move down with short term rates this time? Could it provide an opportunity for those facing huge resets to repent and convert to a FRM?

Is a soft landing possible under that scenario?
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